Storebrand Asa · OSL:STB
Storebrand Asa — Investor Day (March 2011)
34 slides from Storebrand Asa's investor day presentation, Mar 9, 2011
Slide 1: Capital Markets Day 2011
Capital Markets Day 2011 9 March @=d storebrand LF) ae \ eh” GEESE
Slide 2: Important information
Important information: This document may contain forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that may be beyond the Storebrand Group’s control. As a result, the Storebrand Group’s actual f
Slide 3: Capturing growth in the Nordic market
Capturing growth in the Nordic market Capital Markets Day 9 March 2011 Sarah McPhee, Managing Director SPP Morten Unneberg, Head of Sales Norway
Slide 4: Significant growth in Norwegian and Swedish savings market
Significant growth in Norwegian and Swedish savings market General financial savings market General financial savings market 800 Individual Pension Funds 1000 Individual Pension Funds Group Pension Funds Group Pension Funds 700 900 Mutual Funds Mutual Funds Other Securities 2011 800 Other Securities
Slide 5: Strong near and long term growth drivers for pensions and savings
Strong near and long term growth drivers for pensions and savings Long term Nordic Market 90 Average life expectancy 80 Increasing gap between life expectancy 70 Guaranteed public and retirement age pension age 60 50 1900 1920 1940 1960 1980 2000 2020 2040 Near term Norway Near term Sweden Increase
Slide 6: Strong position in a growing Unit link market
Strong position in a growing Unit link market - ambition to be the leading Nordic provider Source: The Swedish Insurance Federation and FNH, individual capital certificates included 6
Slide 7: Capital-light growth in the Swedish market for pension and long-term savings
Capital-light growth in the Swedish market for pension and long-term savings Capital Markets Day 9 March 2011 Sarah McPhee Managing Director SPP
Slide 8: Strong turn-around with Storebrand
Strong turn-around with Storebrand Top of mind Growth in New Sales (APE) in Unit Linked Products (Index 2007=100) AMF 22,2 250 Alecta 15,7 218 200 179 SPP 6,7 150 129 100 Skandia 4,2 100 50 KPA 3,7 From 6th in 0 Folksam 3,5 Aug 2009 2007 2008 2009 2010 Swedbank 3,2 SPP Skandia SEB Trygg Liv Länsförs
Slide 9: Shift to capital-light products
Shift to capital-light products Net flow of reserves SEK mill. Value of new business Unit link SEK mill. Traditional profit sharing Unit link 231 2,809 185 2,640 46 2009 2010 2009 2010 2008 2009 2010 -920 -1,789 9
Slide 10: Strengthened operational excellence
Strengthened operational excellence Lean Offshoring/Outsourcing Example from insurance administration Results after specific activity to reduce lead time 15,9 12,9 11,3 Average lead time 3,0 (Days) 2008 2009 2010 2011 In-house 6% Quality; # errors found Storebrand Baltic (Percentage) 0,1% 0,4% 0,2%
Slide 11: The Swedish pension and savings market
The Swedish pension and savings market Pillar III Personal savings and life insurance 3,901 Personal • Increased awareness of personal savings and pension savings • Moderate/good tax incentives 2,298 • From DB to compulsory DC in all pension plans without Pillar II compensation Occupational pensions
Slide 12: Priorities going forward
Priorities going forward 1. Redefine our market for top- 2. Widen the product base 3. Strengthening the Brand line growth Position Tailored Unit Linked solutions •Build on initial brand building •Shift to non-guarantee products Expand distribution of Group’s success Entering retail market long-
Slide 13: Profitable top-line growth - new sales (APE)
Profitable top-line growth - new sales (APE) ~2 SEK bn. 1.2 SEK bn. 85% 67% 33% 15% 33% 16% 2009 2013 Target Unit link products Other products 13
Slide 14: Widen the product base
Widen the product base Flexible Concept for Small Companies Month-to-month sales in Health Insurance (SEK) Dec Oct Portfolio Managed Funds Jul Apr Jan 500.000 700.000 900.000 1.100.000 1.300.000 Endowment Insurance Platform Neutral Savings SPP Emerging Markets SRI 14
Slide 15: Entering the retail long-term savings market
Entering the retail long-term savings market -leveraging SPP’s infrastructure and increasing profitability Positioned for Individual Corporate Individual Corporate Individual Corporate Pillar II growth Retail Long term savings Pillar III 19% 25% 16% 35% 36% Sales Force Diversified sales 12% Broker c
Slide 16: Tick-the-Box and retail pension products
Tick-the-Box and retail pension products New Sales (SEK mill) 400 350 339 49% 306 300 266 250 228 215 200 164 150 100 50 0 2008 2009 2010 2011 2012 2013 16
Slide 17: Integrated sales and customer service concept
Integrated sales and customer service concept - focus on existing customers and worksite marketing • 737,000 existing individual customers • 30,000 existing corporate clients Customer communication 100,000 incoming phone calls yearly 15,500 personal meetings yearly 686,000 hits annually on spp.se Wo
Slide 18: Strengthening the brand position
Strengthening the brand position - key differentiator in an individualised market Targeting individuals Socially responsible profile 18
Slide 19: Summary
Summary • Strong turn-around with Storebrand • Solid growth in capital light occupational pension products – accelerate shift towards non-guaranteed business • Widening the product base • Growth potential in the retail market - clear strategy and ambition for cross selling to our large customer base
Slide 20: The Norwegian savings market – strong dynamics and growth
The Norwegian savings market – strong dynamics and growth Capital Markets Day 9 March 2011 Morten Unneberg Head of Sales Norway
Slide 21: Current position - strong performance and positioned for growth
Current position - strong performance and positioned for growth No. 1 in Customer Service in corporate market Positive net transfer of assets in corporate market NOK mill. 11.800 1.900 2004 2005 2006 2007 2008 2009 2010 100 2.800 1.100 5.300 600 2005 2006 2007 2008 2009 2010 Total Shift to DC plans
Slide 22: The Norwegian pension savings market
The Norwegian pension savings market Pillar III 1,123 • Increased awareness of personal savings and pension Personal Personal savings and life insurance savings • Insignificant tax incentives 401 339 • Conversion from DB to DC in private sector 312 • Changes in occupational pension regulation Pillar
Slide 23: Pillar I: Significant individual impact of pension reform
Pillar I: Significant individual impact of pension reform Simulated change in state pension Average annual impacts – representative corporate scheme employees by salary and age groups 15 % 10 % 5% % change in state pensions 0% 20 25 30 35 40 45 50 55 60 65 70 -5 % -10 % -15 % -20 % Age • From +10% t
Slide 24: Pillar II: Private sector - DC pension schemes expected to dominate
Pillar II: Private sector - DC pension schemes expected to dominate the market Number of employees with DB/DC1 Expected DC assets development 1400 350 1200 300 No. of employees (1000) NOK bn. 1000 250 800 200 600 150 400 100 200 50 0 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2003 2004 2005
Slide 25: Pillar II: Public sector – strong growth
Pillar II: Public sector – strong growth Number of employees Total reserves – public sector 560 540 100 Government sector No. of employees (1000) 50 (Non funded) 520 339 Hospitals and Health NOK bn. 500 sector 480 210 Municipalities 460 90 440 Municipalities with own pension funds 420 2009 2010 2011
Slide 26: Pillar II: Potential regulation – Defined Contribution (DC)
Pillar II: Potential regulation – Defined Contribution (DC) Increased maximum saving rates for DC Distribution of saving rates in DC market pension plans Maximum savings: 55,000 NOK Currently Savings rate 8% 5% Wages 1G1 6G 12G Maximum savings: 112,000 NOK Companies that shift from DB to DC tend t
Slide 27: Pillar III: Norwegian retail market product areas
Pillar III: Norwegian retail market product areas Life balance sheet savings Mutual funds • Traditional products w/ guaranteed • Important growth market, size 101 NOK bn, return and profit sharing in run-off solid margins • Portfolio from 35 NOK bn. 2007 to 22 NOK • Market share 4%, 4 NOK bn. bn. 20
Slide 28: Clear strategy in the retail market
Clear strategy in the retail market Storebrand’s product range and services are easily available through integrated and customer oriented direct sales channels and worksite marketing Clear targets Measures • Focus on existing customer relationships • Unified sales channels and customer interface • I
Slide 29: Clear focus on existing customers - significant potential for top-line growth
Clear focus on existing customers - significant potential for top-line growth Actual and potential retail clients through Retail customers per product area (1000) existing franchise (1000) 600.000 250.000 Not retail customer Retail customer 493 488 201 500.000 200.000 400.000 332 150.000 300.000 412
Slide 30: Worksite marketing - the initial success leads to full scale implementation
Worksite marketing - the initial success leads to full scale implementation Number of 1000. employees who have bought one or more products from Increased interest and customer Storebrand in a given year satisfaction 2005 - 2010 5 Almost 500,000 employees targeted in Storebrand’s worksite marketi
Slide 31: Integrated sales and customer service concept
Integrated sales and customer service concept - focus on existing customers and worksite marketing • 1,070,000 existing individual customers • 24,000 existing corporate clients Customer communication 450,000 incoming phone calls 50,000 personal meetings 10,000 chat conversations 6,000,000 hits on st
Slide 32: Successful introduction of new web pension application
Successful introduction of new web pension application - increase in customer satisfaction, and basis for financial planning Allow customers to calculate and start pension pay out, using internet banking functionality Integrated with individual customer portal Reduces administration cost for S
Slide 33: Summary
Summary • Attractive market with strong growth • Strong position in the corporate market - shift from DB to DC continues • Significant growth potential in the retail market - clear strategy and ambition for cross selling to our large customer base 33
Slide 34: Storebrand's objective is to be the leading and most respected institution in the Nordic market
Storebrand's objective is to be the leading and most respected institution in the Nordic market for long-term savings and insurance 34